Qualcomm to develop small cells with Alcatel-Lucent

San Diego company teams up with French network equipment maker on project

French network equipment maker Alcatel-Lucent said Tuesday that it plans to work with San Diego wireless technology giant Qualcomm to develop small cell base stations, tiny versions of today's cell towers that are designed to provide wireless coverage in an office building or business park.

The companies did not specify how much each would invest in the development effort. Qualcomm said in an email response to questions that it intends to "take a small equity stake in Alcatel-Lucent in order to hasten the introduction of next generation small cells. We believe this is good for the cellular ecosystem."

Qualcomm has previously made investments in companies to kick start a project, including a recent $120 million investment in Sharp to pursue advanced display screen technology.

In a statement, the companies said the research and development effort would use Qualcomm Technologies’ FSM9900 family of small cell chipsets. The R & D costs would be shared by Alcatel-Lucent and Qualcomm Technologies.

The project aims to develop small cellular base stations for homes and businesses that would boost 3G, 4G and Wi-Fi networks, the companies said. Locations could include urban centers, shopping malls, campuses and business venues.

Qualcomm has been touting small cells as a way to divert some data traffic from the core wireless network, increasing its capacity. Figuring out ways to manage interference created by numerous small base stations is a key hurdle to deploying the technology.

With the growth of smartphones, tablets and other mobile devices, wireless operators are looking at small cells to meet the rapidly expanding data demand, the companies said.

“This initiative perfectly illustrates The Shift Plan we announced last month, which will see Alcatel-Lucent focus on growth technologies, including those facilitating ultra-broadband access,” Michel Combes, chief executive of Alcatel-Lucent, said in a statement.